Australian Market Gets Boost Before Easter Break
After suffering the longest losing run since November 2003, the Australian wool market recorded positive movement in Week 42. This was the final buying and selling opportunity until Week 44 thanks to the Easter recess scheduled for next week.
Due to the upcoming break, quantities increased as many sellers were keen to offer their wool. The final national offering was 42,065 bales. Also occurring in Week 42 was the annual Sydney Royal Easter Show Feature Sale. This event showcased the Australian wool industry to the wider community. The sale included three certified 1PP specialty lots – the pinnacle of Australian wool production. With the upcoming break, buyer sentiment was described as aggressive as buyers attempted to secure meaningful quantity while it was available.
As in recent sales, the main buyer focus was on the higher-yielding wools, and these types generally sold at levels slightly above those achieved at the previous sale. The lesser-style wools were well supported, but not to the same extent as the better types which pushed these wools down for the series. It was the reduction in these wools which was the contributing factor to the lowering of some Micron Price Guides, particularly in the finer microns.
The AWEX Eastern Market Indicator gained 7 cents for the series, closing the week at 1,943 Australian cents. Thanks to currency movements, the EMI recorded a larger gain when viewed in U.S. dollar terms, rising by 11 U.S. cents for the week.
The crossbreds continued their upward path as the main gains were felt in the 26.0 to 28.0 micron range. The 28.0 MPG recorded a new record in both Eastern centers. As previously mentioned, next week is a recess week. Sales resume on the week beginning Monday, April 29.